ᐅ No Completion or Warranty Bond – Should Retention Be Withheld?

Hello,
our house construction is progressing well; the screed will be installed at the end of the week.

So far, we have followed the payment schedule (except for minor withholdings due to defects). Unfortunately, it has only recently become clear to me that we have already paid the majority of the total costs, but the payment schedule does not really correspond to the work completed.

Now to my question:
Our construction contract with the developer does not include any clause regarding completion bonds or warranty guarantees. So, apparently, we have not agreed on anything in this regard, and the construction law applies.

How does this work? Is it still possible to make a general withholding for completion and warranty at this stage?

Best regards,
Simon

First of all, you are bound by what is stated in the contract.

si_re schrieb:

Hello,
our house construction is progressing well, the screed will be installed at the end of the week.

So far, we have followed the payment schedule (except for minor withholdings due to defects). Unfortunately, I have only now really realized that we have already paid most of the total costs, but the payment schedule does not really match the services provided.

Now to my question:
Our construction contract with the general contractor does not include any clause about completion or warranty bonds. So, we probably did not agree on anything in this regard, meaning the Building Code applies.

What does this mean? Is it still possible to withhold a general amount now for completion and warranty?

Best regards
Simon

That ship has sailed. It is always the case that a payment schedule is ahead of the trades, and it is normal to withhold 5-10% at the end.

If you don’t have that, you’re out of luck. If you don’t pay, the general contractor will stop work. I don’t know which is worse.